CAB Payments Stock Jumps on Raised Helios Takeover Offer

Helios Consortium Boosts Takeover Bid for CAB Payments

CAB Payments Holdings PLC (LON:CABP) shares increased by 3.1% after the Helios Consortium raised its cash takeover offer to $1.15 per share. This new proposal values the financial technology company at approximately $292 million.

Overview of the Situation

The revised bid represents a 21% premium to the 30-day volume weighted average share price of CAB Payments. This latest proposal follows a previously rejected offer of $1.05 per share made on January 24. The Helios Consortium, which already controls or has support for 50.33% of the company's shares, stated its belief that CAB Payments would perform better under private ownership after facing challenges as a public entity.

Impact on the Market

The market reacted positively to the higher offer, signaling investor confidence in the deal's potential. The proposal also includes a partial unlisted share alternative, allowing current shareholders to maintain an investment in the business privately. The independent committee of CAB Payments' board is expected to formally respond to this enhanced offer.

Summary

The increased bid from Helios Consortium places significant pressure on the board of CAB Payments to consider the acquisition seriously. With majority shareholder support already indicated, the focus now shifts to the board's official recommendation and the subsequent steps toward a potential delisting from the public market.

FAQ

Q: What is the new takeover offer for CAB Payments?
A: The Helios Consortium is offering $1.15 per share in cash, valuing CAB Payments at approximately $292 million.

Q: How did the stock market react to the news?
A: CAB Payments' stock (LON:CABP) rose by 3.1% following the announcement.

Q: Why does Helios believe the company should be private?
A: The consortium stated that CAB Payments has experienced challenges as a public company and would perform better under private ownership.

Source: Investing.com